This course will give you alternatives to pricing your products and/or services based on customer-perceived value, rather than cost-plus pricing methods. By learning to avoid the deleterious consequences of cost-plus pricing, you will communicate better with customers, be able to discover their expectations up-front, enhance their loyalty and retention, and increase your profitability. Unless businesses adopt new and innovative pricing, rising costs and increased competition will diminish profit margins and they will not be able to reap the full rewards of technological investments that increase productivity, quality and service. Participants will be given alternative pricing methods that focus on customer-perceived value and will be better equipped to deal with the death of cost-plus pricing.
Course ID: POPI
Pricing on Purpose (for Industry)
- Learn alternative pricing methods that focus on customer-perceived value and be better equipped to deal with the death of cost-plus pricing
- Why are we in business and what do customers really buy
- The genesis of cost-plus pricing and why so many businesses still cling to it
- All customers are not created equal and the economics of price discrimination
- Learn why cost-plus pricing has debilitating effects on the operation of your business: 1) Penalizes innovation, ingenuity and creativity and rewards inefficiency, and profligacy; 2) Emphasizes and rewards based upon volume and effort rather than creativity, profitability and results; Imparts a technician-like attitude among associates, rather than cultivating customer service professionals; 3) Actually reduces revenue when investments in technology reduce the cost required to produce various products and services